American Pacific Mining Reports Unreleased 2019 Drill Results from the Madison Project Highlighted by 74m at 1.16 g/t Au, Including 3.46m at 17.71 g/t Au

Vancouver, British Columbia / July 28, 2020 - American Pacific Mining Corp (CSE: USGD / FWB: 1QC / OTCPK: USGDF) ("American Pacific" or the "Company") is pleased to announce results from the 2019 drilling program conducted by Kennecott Exploration Company on the recently acquired 100%-owned Madison copper-gold project, USA ("Madison Project"). The Madison Project encompasses a historical mining district and past producer in western Montana. The Madison Project is currently under an earn-in, joint venture agreement, whereby Kennecott Exploration Company, part of the Rio Tinto Group may spend $30 million USD to earn up to 70% (see news release dated June 6, 2020).

"High-grade, skarn-related massive sulfide mineralization at Madison has been extended 112 meters down-plunge in Hole MADN0012, 108 meters laterally in Hole MADN0010 and 43 meters down-dip in Hole MADN0011 as a direct result of the 2019 drilling results" states Eric Saderholm, Company President. "Historical drilling has produced some very high-grade skarn intercepts in the past, including 30.18 meters at 24.50 g/t Au in Hole UG17-05 and 61.63 meters at 6.97% Cu in Hole C05-06 and strong mineralization potential is open both down-dip and lateral to the existing drilling and modeled mineralization. All new drill sites are now completed for the 2020 Madison drilling campaign. Our new joint venture partners, Rio Tinto, have developed an exploration program to test extensions and offsets to the skarn-related mineralization. American Pacific is pleased to be a part of these endeavors."

The 2019 drill program consisted of fourteen diamond drill holes totaling 4,013.93 m. Drill holes MADN0001 to MADN0006 targeted Porphyry style mineralization and drill holes MADN0007 to MADN0014 targeted the down dip and easterly strike extension to the known Madison Skarn mineralization.

2019 Highlighted drill results include (see Table 1 below for full results):
•MADN0010: cut 1.16 g/t Au over 74m (including 0.18% Cu and 17.71 g/t Au over 3.46m)
•MADN0011: cut 1.42 g/t Au, 2.41% Cu and 44.50 g/t Ag over 2.54m
•MADN0013: cut 2.60 g/t Au and 0.20% Cu over 9.22m

MADN0010 and MADN0011 both intersected high-grade mineralization associated with alteration associated with skarn related sulfides dominated by pyrrhotite and pyrite in the limestone and dolomite host rocks within the upper Devonian Jefferson Formation, a noted ore host time-horizon throughout the western USA.

Click the following link to view the latest drill results and highlighted historical results in 3D:

https://americanpacific.ca/projects/madison/madison-mine-3d-model/

Table 1: 2019 Significant Drill Results from the Madison Project
HOLE ID FROM
(m) TO
(m) Interval
(m) Ag
(g/t) Au
(g/t) Cu
(%)
MADN0001 256.86 258.86 2 7.88 0.04 0.50
MADN0004 84.17 85.28 1.11 0.17 1.04 0.02
MADN0004 349 352 3 0.08 1.25 0.00
MADN0007 83.5 85.82 2.32 2.19 1.06 0.76
MADN0009 123.06 129 5.94 2.01 0.4 0.01
MADN0010 151.61 226 74.39 2.12 1.16 0.06
Includes 151.61 179.98 28.37 4.01 2.27 0.10
Or 151.61 155.07 3.46 4.43 17.71 0.18
And 208.00 226.00 18.00 1.85 1.06 0.07
MADN0011 182.00 184.54 2.54 44.5 1.42 2.41
MADN0011 203.00 204.23 1.23 0.58 1.59 0.01
MADN0012 139.00 142.00 3.00 1.36 1.72 0.02
MADN0013 201.00 210.22 9.22 6.8 2.60 0.20
MADN0014 183.00 186.00 3.00 1.16 0.91 0.12
•g/t = grams per metric tonne
•m = meters
•Interval lengths are reported as downhole lengths. True width of mineralization has not been determined.

Drill holes MADN0002, MADN0003, MADN0005, MADN0006, MADN0008 did not return significant assay values and have been omitted from Table 1.

Table 2: Historical Drill Highlights from the Madison Project

Hole_ID Thickness (m) Au_g/t Cu%
UG17-05 30.18 24.497 0.39
UG17-06 10.97 41.65 0.38
UG17-06 including 4.60 82.87 Not significant
86-6 7.31 25.75 Not significant
C05-06 14.69 12.10 Not significant
C05-06 61.63 Not significant 6.97
C05-06 including 8.47 Not significant 40.03
C06-08 84.70 Not significant 1.89
C06-08 2.70 41.73 19.58

For context and additional historic drilling results, please consult the technical report for the Madison Project dated effective February 22, 2019, which was prepared in accordance with National Instrument 43-101 - Standards for Disclosure for Mineral Projects which is available on the Company’s website.

https://americanpacific.ca/site/assets/files/3775/2019-03-04_brd_ni_43-101_report.pdf

Previous Drilling by Broadway Gold Mining Ltd.
Notable drill intercepts from MADN0010 are considered a significant step-out from high grade underground drilling reported in Press Release dated June 15, 2017 by Broadway Gold Mining Ltd. ("Broadway Gold"). The results from this program include:
•1.098% Cu and 1.651 grams per tonne Au (g/t) over 24.30 meters in hole UG17-04
•2.717% Cu and 2.466 grams per tonne Au (g/t) over 7.32 meters in hole UG17-04
•0.391% Cu and 24.497 grams per tonne Au (g/t) over 30.18 meters in hole UG17-05
•0.276% Cu and 68.608 grams per tonne Au (g/t) over 4.57 meters in hole UG17-05
•0.384% Cu and 41.648 grams per tonne Au (g/t) over 10.97 meters in hole UG17-06

Interval length reported by Broadway Gold are reported as drilling length. True width of mineralization has not been determined.

Underground drilling defined a 30.00 m by 16.50 m ovoid sulfide body immediately beneath the 600 level. Drill hole results suggest that gold and copper mineralization continues to depth below the 600 level as shown in the accompanying drill plan (see also http://broadwaymining.com/projects/current-exploration/).
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